Speed Reads

  • We consider Endurance to be the best warranty company and award it as Best Coverage.
  • According to a survey we conducted in 2022, 65 percent of customers who bought an extended warranty were satisfied with their coverage.
  • When comparing car warranty companies, look at factors like industry standing, customer service ratings, coverage options, average costs, and transparency.

Are you looking to extend your warranty coverage after your manufacturer’s coverage has expired? You may consider investing in an extended warranty from one of the industry’s top car warranty companies. In this guide, we’ll give a short overview of the car warranty companies worth considering, focusing on industry reputation, customer service ratings, cost, and coverage plans.

Why You Can Trust Motor1.com At Motor1.com, we are dedicated to supplying car owners with the well-researched, fact-checked information they need to make sound decisions about auto warranties. Our team analyzes provider offerings and customer insights so you can feel empowered to make the best choice.
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5 Things To Look For In The Best Aftermarket Warranty Companies

If you’d like aftermarket car warranty coverage, shopping for quality options and determining the best warranty provider for your needs can be difficult. While reputable extended car warranty companies can offer decent coverage at good rates, some extended car warranties are little better than warranty scams, taking customers’ money and failing to provide adequate service.

If you know what to look for in a service contract, you have plenty of excellent options for coverage. We typically consider the following five categories when evaluating the best extended car warranty providers.

Industry Standing

Why it’s important: Industry standing is a good way to check whether a company is a fraud or legitimate. Look for extended warranty companies that have partnered with other trusted companies and that regularly win industry awards.

How to check: One place to start is the Better Business Bureau (BBB). The BBB rates a provider based on how it resolves customer complaints, the transparency of its business practices, and any known licensing or advertising issues. We also recommend looking into how long a warranty provider has been in business and how many states it serves.


Why it’s important: If you are going to spend upwards of $1,000 on an extended warranty, it’s important that your most essential vehicle parts and components are covered.

How to check: Any reputable extended car warranty provider will allow potential customers to review sample service contracts to verify what the warranties cover. These contracts list exactly what is or isn’t covered by the warranty. Carefully read the full list of coverage and exclusions of any extended car warranty before you purchase it.


Why it’s important: If you want your extended warranty to help you save on repair costs, you need to find the best coverage plan at the lowest possible cost.

How to check: Most extended warranty providers offer easy-to-use quote tools online. In some cases, you may have to call to request pricing. Most providers also offer payment plans, though some may require upfront payment in full.


Why it’s important: Any provider that tries to make coverage details obscure should raise eyebrows. Providers should be up front about contract information, and it’s a bad sign when a provider tries to hide important coverage details from its customers.

How to check: Companies that have a good BBB standing and post sample contracts demonstrate a high level of transparency. If you have difficulty finding contract details or even receiving a quote from a provider, this should be a red flag.

Customer Service

Why it’s important: Any extended warranty is only as good as the service it provides when it comes time to file a claim. The worst extended car warranty companies have slow claims processes and regularly look for excuses to deny claims.

How to check: Look at a company’s BBB page, which lists customer reviews and complaints. You can also check websites such as Trustpilot to see what customers are saying. Keep in mind that even the best extended warranty provider is bound to have its fair share of complaints. However, providers with an especially high volume of complaints and few positive comments should be greeted with skepticism.

Compare Car Warranty Companies

Extended new and used car warranties can help you avoid draining your savings account or relying on credit cards to cover repairs. But without properly vetting companies, you could end up wasting your hard-earned money on an extended warranty that has bad coverage or customer service.

With extended car warranties, you can choose a provider that keeps the process in-house to ensure customers receive a higher standard of service, as the same team that hands the quotes and sales process also handles your claims. Or you can select an extended warranty company that uses third-party administrators to handle claims and contract details.

There are few vehicle service contract providers that handle policies directly, such as industry leaders Endurance, Protect My Car, and Infinite Auto Protection.

The sections below look at the best car warranty companies, including direct warranty providers and car warranty brokers.

Best Auto Warranty Companies

Here are the five best extended car warranty companies:

  1. Endurance: Best Coverage
  2. ForeverCar: Best Value
  3. Olive: Best Online Warranty
  4. CarShield: Best Monthly Payments
  5. CARCHEX: Best for Used Cars

Each of these providers scored highly for industry standing and transparency in our in-depth market review. Here’s a closer look:

Top Car Warranty Providers

Warranty ProviderOur AwardMotor1 RatingBest ForMaximum Term
1. EnduranceBest Coverage4.6 / 5.0Motorists looking for a direct warranty administrator8 years
2. ForeverCarBest Value4.5 / 5.0Owners looking quality coverage at low ratesNot stated
3. OliveBest Online Warranty4.5 / 5.0Motorists looking for an easy online claims process3 years
4. CarShieldBest Monthly Payments4.5 / 5.0Owners of specialty or used vehicles10 years
5. CARCHEXBest for Used Cars4.4 / 5.0Motorists who want to buy from a well-established brand10 years

Customer Satisfaction With Extended Warranty Companies

Our team polled 1,000 consumers who have purchased or thought about purchasing an extended warranty. Of those who had extended warranties, 65 percent were satisfied with the provider whether they had used their coverage or not.

However, 7.3 percent felt disappointed the warranty didn’t cover certain repairs, and 5.3 percent believed their company had tried to avoid paying for covered repairs.

Pie chart of percentage of responses to the question:

Best Extended Car Warranty Companies

In the sections below, we provide an in-depth look at the best car warranty companies. Along with providing the specific information we used to determine scores, we provide sample quotes and areas where each car warranty company stands out.

1. Endurance: Best Coverage

Formed in 2006 and based in Northbrook, Illinois, Endurance has grown into one of the largest competitors in the extended warranty market. It’s a well-known direct provider backed by an AM Best A-rated insurance company and holds a place on the 2020 Inc. 5000, the most prestigious ranking of the nation’s fastest-growing companies, and sponsors Jarett Andretti of Andretti Autosport.

Endurance Pros & Cons

Pros Many coverage options Can cover regular maintenance items Direct warranty provider 4.0-star Trustpilot customer rating
Cons Some perks are only free for one year

Endurance Car Warranty Reviews

Overall, we rate the provider 4.6 out of 5.0 stars and recognize it for having the Best Coverage of 2023. Along with comprehensive coverage, Endurance has affordable rates and strong customer reviews.

The extended warranty company has a 3.9-star “Great” rating on Trustpilot based on over 6,000 customer Endurance warranty reviews. It has a 3.6-star rating from customers on the BBB based on more than 1,800 reviews. The BBB itself does not currently have a rating for Endurance.

Endurance Warranty Claims

Endurance is a direct administrator of warranty plans, so there’s no middleman when filing claims. You’ll always deal with Endurance directly, which can simplify the filing process. It’s one of the reasons we think Endurance is one of the best extended car warranty companies.

Endurance Warranty Cost

According to the quotes we received, Endurance plans range from $107 to $163 per month, which is on par with the industry average. What you pay depends on the type of coverage you want, your deductible, and your vehicle.

Endurance Warranty Coverage

Endurance offers plenty of options when it comes to warranty plans, providing six tiers of coverage that range from basic powertrain warranty coverage to factory-level coverage. 

However, the term lengths aren’t specified for each tier. That said, we were able to find that coverage is offered up to 8 years/200,000+ miles.

With six tiers of protection, you can choose the coverage that best suits your needs and wallet. Let’s take a look at the different tiers and what each car warranty plan covers:

Endurance Warranty Plans

Car Warranty CoverageVehicle Warranty PlansCar Warranty Plan Details
SupremeExclusionary coverageEndurance’s most comprehensive choice for protection, this plan covers your vehicle with bumper-to-bumper protection. This exclusionary warranty covers most mechanical and electrical car parts, except for a short list of exclusions.
SuperiorHighest stated-component coverageThis stated-component warranty covers hundreds of specified components, including parts of the engine, transmission, steering, air conditioning, and fuel systemI .
Secure PlusFast coverageThis plan offers mid-level coverage by protecting the steering, electrical, and brakes. It has the shortest waiting period out of the bunch (including the lower-tiered Select Premier plan) at 30 days and 1,000 miles.
SecureBudget-friendlyThis is Endurance’s most barebones option, which only covers your car’s most vital components – the engine, drive axles, and transmission.
Select PremierBest for aging vehiclesThis plan is geared toward high-mileage vehicles and covers mostly basic powertrain components (the engine, transmission, and drivetrain/drive axle), air conditioning, and select electrical parts.
EnduranceAdvantageExtended warranty and routine maintenance coverageThere are three sub-tiers of EnduranceAdvantage coverage to choose from, all of which cover certain mechanical breakdowns as well as routine maintenance services like oil changes.

Endurance now offers a Highline add-on to its Supreme plan to cover a wide variety of luxury models from BMW and Land Rover to Maserati and Porsche.

Each Endurance plan comes with trip interruption protection, rental car reimbursement, courtesy towing, and 24/7 roadside assistance (up to $30 per day and $150 per incident).

Is Endurance A Good Warranty Company?

Endurance is great for motorists who want a quick and easy claims process. Customers can file claims through an online portal or by phone, making the process pain free. Plus, you’ll always get personalized assistance from an online concierge who will assist you anytime you need it.

With a free year of Endurance Elite Benefits, Endurance offers two free tire repairs or replacements per year, which is uncommon among extended warranty companies. It also offers other benefits like $1,000 of total loss protection and $500 for key fob replacement.

Like all extended warranties, Endurance doesn’t cover everything. Plans exclude damage from the environment and lack of maintenance. They also exclude wear items like filters and brake pads (unless covered under the EnduranceAdvantage maintenance plan).

Check out our Endurance warranty review for more information.

2. ForeverCar: Best Value

Founded in 2011, ForeverCar boasts some of the strongest online reviews in the extended warranty industry. The company has partnerships with Carvana, The General, American Family Insurance, and Safe Auto. ForeverCar holds an A+ rating from the BBB as well. The company’s plans come with a 30-day money-back guarantee and are available in all states except Washington and California.

ForeverCar Pros and Cons

Pros Direct payment to repair facilities Unlimited mileage contracts High customer review scores
Cons Three-year maximum for plans No coverage for vehicles over 150,000 miles Doesn't cover vehicles older than 2010

ForeverCar Reviews

We give ForeverCar 4.5 out of 5.0 stars along with our Best Value award. There are four coverage levels to choose from, all of which have unlimited mileage. ForeverCar plans are available for vehicles up to 10 model years old.

Customers give ForeverCar excellent reviews online. The company has a 4.8 out of 5.0-star rating based on over 5,000 Trustpilot reviews.

Customers on the BBB give the company only 1.8 out of 5.0 stars, but that rating is based on just five reviews. Most complaints on the BBB involve misunderstandings of what parts are covered, which illustrates the importance of reading the fine print on any vehicle service contract.

ForeverCar Cost

The ForeverCar warranty quotes our team received for a 2017 Honda CR-V with 45,000 miles all came out to around $50 per month for 36 months. In our experience, getting a quote from the company was fast and easy. All we had to do was answer a few basic questions to see prices for multiple plans.

ForeverCar Warranty Plans

ForeverCar offers four levels of coverage:

Warranty PlanYears of CoverageDetails
Platinum Plus3Covers nearly all breakdowns with a short list of exclusions and also covers certain wear and tear parts like fuses, light bulbs, and brake pads
Platinum3Covers almost any breakdown except for a few exclusions
Gold3Protects most major systems of the vehicle while adding enhanced coverage for various electrical and mechanical components
Silver3Protects most major systems of the vehicle

ForeverCar Perks

All ForeverCar contracts come with the following perks:

  • Roadside assistance
  • Rental car reimbursement
  • Trip interruption

Is ForeverCar Legit?

ForeverCar is a good option if you’re looking for an affordable extended warranty for a car less than 10 years old. The company’s total plan costs and monthly payments are less expensive than most of its competitors. We like that ForeverCar’s highest level of coverage includes wear and tear items like brake pads, which is a rarity in the industry. It’s also easy to find sample contracts on the ForeverCar website.

Read our ForeverCar review for more information.

3. Olive: Best Online Warranty

We give Olive 4.5 stars overall and recognize it as the Best Online Warranty for how easy it is to purchase plans and manage claims online. The company’s website has a modern look and makes comparing coverage levels fast and easy. Olive also offers online chat for its customers, including an after-hours chatbot that is genuinely helpful.

Olive was founded in 2000 but only began selling its warranty plans online in 2020. The company has an A+ rating and accreditation from the BBB. Olive partners with companies like Consumer Affairs and auto repair estimator RepairPal and has been a sponsor of the NHL’s Anaheim Ducks. The company’s vehicle service contracts are available in all 50 states.

Olive Pros And Cons

Pros RepairPal Certified Shops partner Low monthly payments and overall cost No waiting period or inspection required 4.7-star Google review rating
Cons Only three years of coverage at a time Pre-existing conditions are not covered No coverage for rideshare vehicles

Olive Warranty Reviews

Customers on the BBB give Olive 3.4 out of 5.0 stars, although that rating is based on just five reviews. The company has responded to every complaint from customers on the BBB as well. Positive Olive reviews focus on the ease of the claims process and the ability to quickly compare coverage levels on the company’s website.

Olive Warranty Cost

We found average or lower rates when we gathered quotes from Olive. Total plan costs for a 2017 Honda CR-V with 45,000 miles ranged from $898 to $2,382. The monthly payments we were quoted ranged from $25 to $66 for 36-month terms. Olive offers deductible options of $100, $250, and $500.

Olive Warranty Plans

Olive offers three levels of coverage, ranging from bumper-to-bumper coverage to powertrain protection. There’s no waiting period for Olive warranty coverage to take effect.

Warranty PlanType of CoverageCovered Components
Complete CareExclusionaryThe most comprehensive coverage, with a small list of exclusions
Powertrain PlusMid-LevelMajor components (engine, transmission, brake system) along with air conditioning and suspension
PowertrainBasic PowertrainEngine, transmission, drive axles

Olive Warranty Perks

All Olive plans come with towing assistance and rental car reimbursement. Plans don’t include roadside assistance or trip interruption benefits. Although many other warranty providers do offer these perks, not providing them is one way Olive keeps its prices low.

Is Olive Warranty Legit?

Olive is definitely a quality extended warranty provider and worth a look if you’re interested in a smooth online experience. The company offers affordable plans and a great deal of transparency in regard to what’s covered by each warranty option. Solid online reviews tell the story of a company that’s generally easy to do business with and responsive to complaints.

Read our Olive warranty review for more information.

4. CarShield: Best Monthly Payments

CarShield has been in business since 2005 and has a 4.0-star rating on Trustpilot based on over 36,000 reviews. The company has the largest market share as far as used cars are concerned. Because of its huge number of reviews and large market presence, CarShield is one of the most popular extended warranty providers.

CarShield Pros & Cons

Pros 24/7 emergency roadside assistance Contracts available for high-tech car features and ATVs Coverage vehicles with up to 300,000 miles on the odometer
Cons Negative reviews from customers Not all contracts are transferable

CarShield Reviews and Complaints

CarShield has an average rating of 4.0 out of 5.0 stars across more than 36,000 Trustpilot reviews and 4.2 out of 5.0 stars averaged from more than 13,000 Google reviews.

Unfortunately, a look at the company’s BBB page shows over 3,000 complaints filed in the last three years. But considering it sold over one million vehicle protection plans in the same time period, the rate of complaints is relatively low.

There is also a BBB alert against CarShield, so make sure you understand that you aren’t talking to a dealer or manufacturer when you speak with a CarShield representative, and always read the fine print before signing any type of contract. Like all extended warranties, CarShield plans come with a number of exclusions, so it’s important to make sure you fully understand what’s covered and what isn’t.

How Expensive Is CarShield?

According to the rates we received, CarShield is not expensive for monthly payments. Depending on the plan, you may pay between $110 and $200 per month. This price applies to a $100 deductible.

CarShield Plans

CarShield plans can cover up to 300,000 miles, which is the highest limit in the industry. The company offers six levels of coverage:

Car Warranty CoverageOverviewCar Warranty Plan Details
DiamondClosest to factory-level coverageThis plan offers bumper-to-bumper coverage designed to be similar to a manufacturer’s warranty for new cars.
PlatinumComprehensive coverageThis comprehensive plan is perfect for high-mileage vehicles.
GoldCoverage for both minor and major vehicle partsThis plan offers powertrain-plus coverage for the engine, transmission, water pump, air conditioning, and starter.
SilverBasic coverageThis provides basic powertrain coverage for the most important parts of your vehicle.
AluminumHigh-tech electrical coverageThis vehicle service contract protects the engine control module, alternator, navigation/GPS, electrical system, and starter.
Motorcycle & ATVMotorcycle, all-terrain vehicle, or other off-road vehicle coverageThis plan comes with a variety of coverage levels and contracts for specialty vehicles.

Is CarShield A Good Company?

CarShield can be a solid option for any driver looking for affordable coverage. Some of the bonuses that come with many CarShield plans include:

  • Low deductibles
  • 24/7 roadside assistance
  • Complimentary towing services
  • Claims paid directly to the repair shop
  • Rental car reimbursement with some plans
  • Top-rated warranty distributors like American Auto Shield

Learn more about the company in our CarShield review.

5. CARCHEX: Best For Used Cars

CARCHEX is one of the most well-known and reputable extended car warranty companies around. Established in 1999, CARCHEX has an A+ rating from the BBB, BBB accreditation, and numerous endorsements from trusted brands like Kelley Blue Book, CARFAX, RepairPal, and Edmunds.com.

CARCHEX Pros & Cons

Pros Respected company with a long history Most plans come with added benefits Affordable coverage 30-day money-back guarantee
Cons Service varies by administrator Limited luxury vehicle coverage $50 cancellation fee

CARCHEX Warranty Reviews

CARCHEX has an A+ BBB rating and accreditation, and it’s endorsed by several industry leaders such as Kelley Blue Book and the Vehicle Protection Association. The company has also received numerous awards for outstanding customer service, including:

  • TopConsumerReviews.com 5-star rating for six consecutive years
  • BestReviewsHub.com Best Choice Award for four consecutive years
  • Golden Bridge Awards® “Silver Status” for three consecutive years for customer service

When it comes to customer service, the provider’s No-Haggle, Low-Price, Everyday Guarantee™ differentiates CARCHEX from competitors. The company aims to provide the best possible experience in which coverage and pricing details are clear, you aren’t pressured to buy, and your questions are fully answered. It’s an experience that can be hard to find in the car warranty industry.

CARCHEX Customer Service

CARCHEX has a no-pressure signup process and generally low prices. You can call the company any time and be sure that you’ll get a clear explanation of pricing and coverage terms, without a pushy salesperson on the other end.

The contracts and plans for the different levels of coverage that CARCHEX offers are long and rather confusing, but a representative can walk you through them, which is a major help. If you’re not satisfied with your warranty plan within the first 30 days, you can cancel it and receive a full refund as part of CARCHEX’s 30-Day Money-Back Guarantee.

CARCHEX Warranty Cost

On average, CARCHEX extended warranties cost between $177 and $222 per month depending on the plan and payment schedule you choose. Total car warranty costs range from about $3,100 to $4,000 for the quotes we received. You can also pay for your entire plan up front and save a small amount of money.

CARCHEX Warranty Coverage

CARCHEX has five tiers of coverage:

Car Warranty CoverageYears of CoverageWho It's ForCar Warranty Plan Details
TitaniumUp to 10Owners looking for the highest level of auto protectionCARCHEX’s exclusionary, comprehensive coverage comes with a short list of exclusions.
PlatinumUp to 10Owners who want long-term coverage of stated componentsThis long-term warranty for stated components covers hundreds of specific parts.
GoldUp to 10Owners of vehicles over 60,000 milesThis extended car warranty for older vehicles covers most major vehicle systems.
SilverUp to 7Owners of high-mileage vehiclesThis plan protects high-mileage vehicles by providing essential coverage for many major systems.
BronzeUp to 7Those looking for basic coverageThis warranty plan protects against the most common and expensive repairs.

Is CARCHEX A Good Warranty Company?

CARCHEX is a good option for vehicle owners who already have a preferred mechanic or auto repair facility, as the company has a large, nationwide network of approved service providers. Vehicle owners don’t have to go through lengthy claims proceedings. Instead, the auto shop can file the claim directly with CARCHEX, saving you a lot of time and stress.

As an added bonus, CARCHEX offers 24/7 roadside assistance as a perk with all its coverage plans. Most plans also come with rental car reimbursement and trip interruption coverage.

Check out our CARCHEX review for more information.

Extended Car Warranty Companies

An extended car warranty company sells vehicle service contracts. It acts as an extension to the original manufacturer’s warranty but from a third-party provider. In a nutshell, it’ll cover your vehicle after your original warranty runs out, and depending on the provider and plan you choose, it can sometimes offer even better coverage than your original warranty.

Remember, car insurance generally doesn’t cover repairs due to mechanical breakdowns. It covers damages caused by collisions and environmental factors, so don’t think that you’re in the clear just because you have auto insurance.

If you want full financial peace of mind, an extended warranty is worth looking into. Considering car repairs become more likely and more frequent as cars age, it’s generally worthwhile to invest in an extended warranty that will cover your vehicle in its later years when the repair bills typically start to pile up.

Are Extended Car Warranties Worth It?

Drivers who are planning to keep their vehicles for a long time should consider investing in an extended warranty. In fact, the opposite is also true. If you plan to sell your vehicle on the private market after a few years, a transferable service contract could make your car more appealing to potential buyers.

The typical manufacturer offers bumper-to-bumper warranty coverage for 3 years/36,000 miles. While some manufacturer warranties, like the Hyundai warranty, cover you for longer, they still fall short of the more than 150,000 miles the average car owner can expect to put on their vehicle over the course of its lifetime.

Do You Need an Extended Warranty?

If unexpected costly repairs are something you’re worried about, you should look into third-party warranty coverage. With independent providers, you have the ability to purchase an extended service plan for new and used vehicles at any mileage. Third-party providers also typically have more coverage options than manufacturers, so you can purchase a plan that better suits your vehicle and budget.

Just like with auto insurance, car owners should read the fine print of a vehicle service contract to see what’s excluded and what can potentially void a warranty. You should also make sure that you’re signing up for a monthly payment that fits within your finances. To be sure the extra coverage is a good decision for you, it’s important to consider the pros and cons of extended car warranties.

Weighing coverage options from brands like Endurance vs. CARCHEX can provide a better sense of what you’re getting from each company, and comparing free quotes from multiple providers is a great way to find the best price for car protection.

Stylized graph of reasons customers chose an extended warranty.

Do Consumers Trust Extended Warranty Companies?

In our review team’s survey, we asked consumers about their level of trust in extended warranties from both third-party providers and car dealerships. We found that 63 percent of respondents trust an extended warranty from a third-party car warranty company, with 4.4 percent having complete trust. On the other hand, 15 percent of respondents don’t trust purchasing an extended warranty from a third-party car warranty provider, with 2.7 percent who say they don’t trust it at all.

When it comes to purchasing an extended warranty from a car dealership, 65 percent of consumers we polled trust this process, and 7.6 percent specified that they completely trust in a dealership extended warranty. However, 16 percent of respondents don’t trust purchasing an extended warranty from a car dealership, with only 0.6 percent who don’t trust it at all.

From this data, we can generalize that slightly more consumers have absolute trust in purchasing an extended warranty from a car dealership than from a third-party car warranty company.

It’s important to note that 55.8 percent of respondents polled said that they have never purchased an extended warranty from a third-party extended warranty company. This means that they either chose to purchase from a dealership or chose not to purchase a vehicle service contract.

Where Can I Get An Extended Warranty For My Car?

When it comes to buying vehicle warranties from reputable extended car warranty companies, you have two options for protection: getting coverage from your car manufacturer or opting for an independent auto warranty provider or third-party broker. Now, let’s take a look at the differences between your two options.

Manufacturer-Backed Extended Warranties (Dealers)

All new cars leave the dealership with a factory warranty. If you enjoyed the level of vehicle protection that you got from your manufacturer’s warranty, there is the option of buying an extended warranty directly from the carmaker.

Most car dealers and manufacturers offer their own extended warranty options. But typically, extended manufacturer warranties are only available for purchase before a car’s original warranty expires. They are typically less extensive than the bumper-to-bumper warranty and powertrain coverage you get during the first few years of a car’s life, but they do cover many parts. One upside is that repairs are guaranteed to be made by factory-trained technicians using original equipment manufacturer (OEM) parts and accessories.

That said, extended warranties from the dealer tend to come with a higher price tag than a third-party option, so it’s a good idea to try to negotiate the price. You also don’t have as much room to customize your coverage plans. Always be sure of what will and won’t be covered before purchasing an extended warranty from your dealer. Many manufacturers drop coverage soon after your car reaches 100,000 miles.

When you purchase a contract from a dealer, you’re also limited with where you can carry out repairs, which usually means taking your vehicle to dealership repair shops. This comes with ups and downs. On the one hand, you’re guaranteed to get exact replacements for any faulty parts, but on the other hand, you’ll typically have fewer service location choices.

Direct Service Providers

Car warranty companies that handle their own protection plans are called direct service providers. Being a direct service provider means handling everything from selling the warranty to approving car warranty claims to paying the repair shop after your car is fixed.

The idea is that a customer will always know who they’re dealing with. There’s no confusion about going through a middleman to file a service request, and you ideally avoid extra administrative fees or slowdowns during the claims process.

Third-Party Car Warranty Brokers

Although warranty companies that administer their own plans have a number of advantages, vehicle service agreements brokers are still a viable option. They are, in many ways, the reverse of dealer warranties. While you generally won’t be guaranteed to receive exact factory replacement parts, many third-party warranty companies have much larger networks, meaning there’s a higher chance you can get your car repaired at your favorite local auto body shop and still be covered by your warranty.

The coverage options and additional perks are similar to what you’ll get from the dealership – and sometimes even better. For example, most manufacturer extended warranties don’t have six levels of coverage like Endurance. You’re more likely to find one to three levels of coverage with a dealer.

You’ll want to make sure you’re looking at reputable extended car warranty companies in order to avoid potential scams. A car warranty provider like Toco could be a great place to start. Toco is a third-party warranty company with an A+ rating and accreditation from the BBB, and it offers low rates without a down payment.

Extended Auto Warranty Companies: Conclusion

All the reputable extended auto warranty companies we’ve discussed will likely serve you well and provide you with peace of mind. However, each company offers plans that appeal to different types of vehicle owners, so the final decision comes down to your needs and preferences. We recommend comparing free quotes from multiple providers to find the best plan options.

Best Car Warranty Companies: FAQ